Before World War II, the water mill operating here used to provide services to local residents. During the war, the partisan units found shelter on the farm. Before the war, the miller Józef Winiarski underwent radiotelegraphy training, then in the resistance he was the deputy radiotelegraph instructor for the Tarnów-Brzesko region and he trained the local communication teams of the Home Army and Peasants' Battalions. His mill produced flour for the needs of partisans. After the war, Józef Winiarski expanded the farm. Along with the electrification of the village in 1960, an electric mill and sawmill was launched into operation. In 2010, the farm was placed under conservation protection, due to the unique ethnographic values preserved in the settlement, but also because of the preserved old rural industry related to milling and sawmill. The objects and documents collected for years initiated the creation of the museum.

The collection includes equipment and objects related to milling technology, agricultural machinery from the 19th and early 20th centuries, furniture, old household equipment, historical crafts, and everyday objects. In addition to providing exhibits, it presents live demonstrations related to folk crafts and the techniques and technology used on the  farm in days gone by. You can even try your hand at operating the traditional equipment of the historic mill in the building, which makes a  stay in the mill settlement almost irresistible. There is a small shop next to the mill that sells flour direct from the mill. A bread oven from the early 20th century, still in use today, has been preserved in the miller's house. Osada Młyńska hosts educational culinary workshops for schools, young people and organised groups. Regular, recurring events such as European Heritage Days and International Mills Day are also held.